Tenant didn't pay the rent increase

[Xiao C.]

Hi,

I'm new here and also green when it comes to rental properties in California. Currently, my family ran into some issues with the tenant and I would love to get some feedbacks.

The background. We have a single family home rented out for 2+years to a tenant and in the beginning of July, we'd hand delivered a letter to one of the tenants notifying them of a $50 rent increase effective this month (September). When we went to collect rent over the labor day weekend, they've only pay the old rent but not the new increased rent, which we believe is intentional on their part. We've also send out a text message to 2 of the tenants (previous communications were made via SMS) to remind them and to let us know when we can get the remaining balance of rent. They've never replied back to us.

What are our options? 3 day notice to pay or quit? 60 days notice to terminate lease? If I do the 60 day notice, do I ignore the rent increase notification given to them almost 2 months ago? If I do the 3 day notice to pay or quit and they pay the owed balance, can I end their lease in a few months from now? They are not very good tenants, so I would prefer to end their lease sooner or later.

Right now, I am composing a letter to send them demanding payment for the remaining balance. Am I allow to add a late fee payment on top of the remaining balance since they did not pay in full and the grace period is over for late rent?

Also, should I return the incorrect rent of September or do I hold on to it until I received the full amount?

Any insight on this is appreciated. Thank you

[Kyle J.]

It's not clear to me if these tenants are month-to-month (since you mention increasing their rent), or you have a lease with these tenants (since you also refer to terminating their lease). 

In any event, the normal landlord response (in California) to non-payment of rent (which would include partial payment) is a 3-day notice to pay or quit.

With regard to your question "If I do the 3 day notice to pay or quit and they pay the owed balance, can I end their lease in a few months from now?"  The answer is no, you cannot end it for non-payment of rent (which is what the 3-day notice is for).  However, if you have some other legitimate reason then you may be able to end it for that reason.  Or if they are month-to-month then you can end it for no reason (with the 60 day notice).  However, how you proceed will depend on whether they are month-to-month or you have a lease with them (which as I previously stated I'm still not clear about).

As for whether to charge a late fee, that will depend on how your rental agreement with the tenant reads.  On mine, if rent isn't paid IN FULL by the end of the grace period, then a late fee is due.

As for your question about returning the "incorrect rent of September", no - do not return that.  Keep it and serve the 3-day notice to pay or quit for the amount still owed (assuming your rent increase notice was proper).